Hope for Better Airfares...

[Margy Z]

Just received this from Yapta:

Hi Margy,

As the economy struggles, it may be an opportunity for you to "buy low" on holiday airfare. Here's what's happening:

1. More and more businesses are beginning to cut back on travel as a way of reducing costs during the current economic climate. As a result, business travel is down 10-20% and airlines are trying to fill the void by making leisure airfare prices more attractive.2. Airline competition is growing more fierce in certain markets and it's forcing some carriers to lower fares.
3. Some airlines are lowering airfares due to cheaper fuel prices.

So, if you've completely abandoned the notion that you'll be able to get a good airfare for the holidays, think again. Cheap fares are emerging in certain markets and presenting a perfect opportunity to save! If you're planning to fly during the holidays, use Yapta to track the airfare on various flights as soon as possible. (It's not too late!) We'll alert you when the price of these flights drop. And if you've already booked a flight, use Yapta to protect your price. We'll alert you when there's an opportunity to save by re-booking at a lower fare.

Thanks!
YAPTA - Your Amazing Personal Travel Assistant

[Tracy in WI]

Thanks for sharing Margy - that is good news. I looked for fares to STJ for January and June and right now they are way up from what I normally pay. I'll keep checking!

Tracy

[Palmtrees]

There's a major flaw in that logic. Business travelers have always paid MORE for the same flights largely because they can not book months in advance. Their higher fares have served to offset the lower fares paid by leisure travelers.

With those higher business fares being rarer the airlines will have to charge more to the rest of the passengers to maintain the same revenue.

The fuel thing is another story completely and whether the current low oil price will translate to lower fares is a tossup right now due to the volatility we've seen in the last few months and how well the airlines did at hedging their fuel supplies. Southwest was well known for doing a great job of buying fuel futures...until now. They have overpaid for their fuel recently and had their first quarterly loss in many, many years.

[Margy Z]

Many large corporations have pre-negotiated prices with a preferred carrier - no matter when they book, they get their rate. If they don't fly, I would think that would create capacity at the lower end. Major business routes would be where you would see the savings in the ticket price, for most of us, the first part of the route, like ORD to MIA.

[Berlingirl]

I think Yapta is just advertising it's services and trying to put a postive spin on the current situtation...after 20 years in the travel business I am in sad agreement with the following article...

There seems to be an abundance of downsizing in the airline industry lately and it's accelerating down the runway to nowhere. What's going on you ask? Well, if airlines cannot keep their aircraft full they cannot make money on the flight without raising the prices excessively, but if they raise the prices that high then No One will fly and the aircrafts will be even emptier, remember the airline model relies on economies of scale. Commercial travel is way off this summer and expected to get worse.

The recent reduction in oil barrel prices did not help the airlines much, as it came at an unexpected time and the airlines buy fuel futures to hedge against rapid price increases in the markets, so they actually lose when the prices of fuel drop rapidly if they already bough fuel contracts for a higher price, it did them no good. Some airline sector analysts predict two major airlines will file bankruptcy in the next couple of quarters; I agree with that summation.

The airlines have no choice but to reduce capacity and now economic indicators show that this Holiday Season travel for Thanksgiving, Christmas and New Years will fall far short and that means that the downsizing will continue. This means more losses and more aircraft retired to the desert. It also means that companies like Boeing and Airbus will be going through a little more turbulence of their own.

When looking at airlines like Delta, American and others, it seems like a good bet that we will see some hard choices on the horizon. Many of the foreign airlines maybe bailed out by their countries, as they cannot allow them to fail. This will get interesting in Q4 2008 and in Q1 and Q2 in 2009. The airline industry as we know it will be completely changed in the near future.

Article Source: http://EzineArticles.com/?expert=Lance_Winslow

[elisa_nj]

Already the exact same scenario I looked into 2 weeks ago has gone down $500.00.

Thats hotel and airfare on Expedia for May, 09. Was $2,500, now 2,079.00! Same everything!

I'm hopeful!

[loria]

i thought that by jumping i would be doing better--so REALLY searched and with a combo of airlines from NY to STT and back found airfare over christmas for about 1000--(booked this in August.....) just saw a cheaper airfare on the same days. (870 or so?)
ah well, live and learn

[elisa_nj]

i thought that by jumping i would be doing better--so REALLY searched and with a combo of airlines from NY to STT and back found airfare over christmas for about 1000--(booked this in August.....) just saw a cheaper airfare on the same days. (870 or so?)
ah well, live and learn

Is it the same airline??? If so call them and get vouchers for the difference in price! AA is the only airline that will credit you but the others will give you a voucher for future travel! It works!!

[loria]

I only wish it were the same airlines....it's not....
but thanks for the advice!